hapabapa
Fiserv (NASDAQ:FISV) has strong fundamentals and positive growth prospects ahead, but due to the current bear market, it is trading at low multiples. This makes it a great growth play in the fintech industry right now.
Company Overview
Fiserv is a fintech company, providing integrated information management and electronic commerce systems, enabling money movement for the financial industry. The company was founded in 1984 and has been listed since 1986 on the NASDAQ, while its current market value is about $64 billion.
Fiserv’s solutions include transaction processing, electronic bill payment, merchant acquiring, and account processing, beyond others. Its core business is providing to banks, credit unions, fintech, small and large corporates, the technology services they need to smoothly operate and move money, which include core processing systems, and electronic billing and payment systems.
The company, therefore, operates in a highly competitive industry, and its major competitors include other technology companies in the financial industry, such as large payment companies Visa (V) and Mastercard (MA), plus other companies like Fidelity National Information Services (FIS), and ACI Worldwide (ACIW).
Business Strategy & Growth
Even though Fiserv is capable of serving customers of all sizes and operates globally in more than 100 countries, where the company has a stronger competitive advantage has been in the segment of small to midsized banks, which lack in-house processing units.
It has more than 10,000 customers worldwide and serves more than six million merchant locations every year. During the past year, Fiserv processed 78 million transactions in its merchant business, while its payment and fintech business processed more than 35 billion debit and network transactions. This large set of transactions provides data and insights for the company, which it uses to differentiate itself from other technology platforms available from competitors.
While Fiserv’s business is spread across several services, the vast majority of its revenue comes from processing and services. Indeed, these activities generated 82% of the company’s revenue in 2021, being primarily driven from account and transaction-based fees, under multi-year contracts that have high renewal rates. This means that most of its revenue has a highly recurring basis, providing good visibility regarding the company’s revenue prospects over the medium term.
Geographically, while the company operates globally, it still generates most of its revenue domestically, given that over the past three years, it generated more than 85% of revenue in the U.S. every year (86% of total revenue was in the U.S. during 2021).
Fiserv’s growth strategy has been a combination of organic initiatives, which have been supported by the move of financial transactions to online channels leading to rising transaction volumes over the past few years, plus acquisitions.
Fiserv has targeted businesses that provide a good operating complement, with the integration of First Data in 2019 being a transformative deal for the company. At the time, First Data was valued at about $22 billion and the merger was an all-stock deal, which led to a much bigger combined company in the payments industry.
It considerably increased Fiserv’s exposure to the merchant-acquiring business and was the most complex integration in the company’s history. Therefore, even though Fiserv has performed several smaller acquisitions and had a good track record, the execution risk was significant given that it was increasing its exposure to a business segment where it had a smaller presence.
Despite that, the integration was completed during 2021, ahead of schedule, and cost synergies amounted to some $1.2 billion, also above its target set in 2019 of around $900 million in cost savings over five years.
Beyond this large deal, Fiserv continued to perform small bolt-on acquisitions in recent years targeting companies that complement its own business, to enhance its position in the fintech ecosystem. For instance, it closed seven acquisitions during 2021, as part of its capital allocation policy, to offer a better customer proposition and have higher customer engagement across its business.
Going forward, Fiserv’s growth strategy is not expected to change much, pushing for growth both through its existing customer base by offering new services, and also seeking acquisitions that are complementary to its operations and are financially accretive.
Financial Overview
Regarding its financial performance, Fiserv has a good financial history given that it has delivered growing top and bottom lines over the past few years, and generated strong cash flow at the same time.
In 2021, Fiserv’s annual revenue amounted to $15.4 billion, an increase of 11% YoY, with the merchant acceptance segment being one of the growth engines as revenue increased by 20% YoY in this segment. Its operating income was $2.3 billion, and its net income was $1.3 billion.
Revenue (Fiserv)
However, its adjusted net income was $3.7 billion, which excludes amortization of acquisition-related intangible assets. This is a non-cash charge on the company’s P&L statement and is a better metric to analyze the earnings power of Fiserv. Moreover, this is also the best metric to compare against cash flow, given that its free cash flow was $3.5 billion (94% conversion rate), while compared to GAAP net income its conversion rate would be 269%.
This means that Fiserv’s cash flow generation is quite good, given that it is close to 100% of its earnings, reflecting its tech-oriented business model with relatively low needs of fixed assets.
During the first nine months of 2022, Fiserv has maintained good operating momentum despite the challenging economic environment, with organic revenue growth of 11% and expanded operating margin by 100 basis points compared to the same period of last year. The merchant acceptance segment has remained the segment with higher growth rates, reporting 17% revenue growth during this period.
Its adjusted net income was near $3 billion in 9M 2022, up by 10.4% YoY, but while its cash flow generation remained quite good, with free cash flow its conversion rate declined to 71%, as Fiserv has increased its capital expenditures and share repurchases in recent months.
Financial metrics (Fiserv)
Regarding its balance sheet, Fiserv’s financial leverage is somewhat high, given that its debt-to-adjusted EBITDA ratio was near 3x at the end of last quarter, while many companies in the technology sector usually have low levels of debt. This leverage position is explained by Fiserv’s acquisition history, which led to higher financial leverage than desired. Indeed, following the First Data acquisition, its leverage position increased significantly, and over the past few years one of its strategic goals was to reduce leverage back to the 3x target.
Fiserv is now close to its leverage target and is likely to maintain this position going forward, which means that large acquisitions aren’t likely over the coming years, even though Fiserv should maintain its strategy of performing smaller deals that it considers to add value for the company.
Regarding its guidance for full year 2022, its target is to reach 11% organic revenue growth and achieve adjusted EPS of $6.48-$6.55, which are both up slightly compared to its previous guidance.
Guidance (Fiserv)
This positive operating momentum is expected to remain strong in the next few years with analysts’ estimates suggesting Fiserv’s revenue should increase to more than $21 billion by 2025, and its adjusted net income is expected to be above $5.1 billion.
Regarding its shareholder remuneration policy, Fiserv does not pay a dividend and has historically preferred to distribute excess capital through share repurchases, a strategy that is not expected to change in the near future. In Q3 2022, it returned $750 million to shareholders through share buybacks, which annualized represents some 5% of its market value. Considering that Fiserv has a very good cash flow generation capacity and its leverage position is close to its medium-term target, most likely Fiserv will continue to use a large part of its free cash flow to perform share repurchases for the foreseeable future.
Conclusion
Fiserv is a company with strong fundamentals and relatively good growth prospects, both through its organic initiatives and acquisitions. Despite that, like many growth companies, its valuation has considerably de-rated in recent months, and Fiserv is now trading at some 13.6x forward earnings. This valuation is quite cheap and much lower than its historical valuation over the past five years, on average about 20x forward earnings, which means that Fiserv is currently undervalued.
Valuation (Bloomberg)
Therefore, Fiserv offers a good combination of growth and value, making it quite interesting for long-term investors that want to have exposure to fintech companies that are already profitable and have a recurring business model.
https://drugsoverthecounter.shop/# pantoprazole over the counter
https://over-the-counter-drug.com/# over the counter yeast infection treatment
best sleeping pills over the counter best over the counter skin tag removal
over the counter birth control male enhancement pills over the counter
pills like viagra over the counter best over the counter teeth whitening
over-the-counter drug antacids over-the-counter
https://over-the-counter-drug.com/# bv treatment over the counter
over the counter anti inflammatories naproxen 500mg over the counter
over the counter pill for yeast infection over the counter heartburn medicine
over the counter essentials united healthcare apoquel over the counter substitute
https://doxycycline.science/# doxycycline 100mg price
https://stromectol.science/# minocycline 100 mg tabs
drug information and news for professionals and consumers. Cautions.
cost of stromectol medication
Read now. Some are medicines that help people when doctors prescribe.
Generic Name. Generic Name.
stromectol covid
Comprehensive side effect and adverse reaction information. Get warning information here.
Get warning information here. earch our drug database.
buy ivermectin for humans uk
Get here. Read here.
Drug information. Drugs information sheet.
ivermectin lice
Get here. Drug information.
All trends of medicament. Everything what you want to know about pills.
generic ivermectin cream
Some trends of drugs. Top 100 Searched Drugs.
Drugs information sheet. Medscape Drugs & Diseases.
ivermectin 3mg tablets price
Long-Term Effects. Read here.
Learn about the side effects, dosages, and interactions. Best and news about drug.
https://stromectolst.com/# ivermectin lotion cost
safe and effective drugs are available. Some trends of drugs.
drug information and news for professionals and consumers. Everything information about medication.
https://stromectolst.com/# ivermectin 2mg
Read here. Drug information.
Read now. What side effects can this medication cause?
ivermectin humans
Drug information. Get warning information here.
All trends of medicament. Get warning information here.
ivermectin ebay
safe and effective drugs are available. Commonly Used Drugs Charts.
Top 100 Searched Drugs. Get warning information here.
https://stromectolst.com/# stromectol prices
Medicament prescribing information. Definitive journal of drugs and therapeutics.
Everything what you want to know about pills. All trends of medicament.
https://stromectolst.com/# ivermectin online
Medscape Drugs & Diseases. What side effects can this medication cause?
Get warning information here. Best and news about drug.
ivermectin nz
earch our drug database. Medscape Drugs & Diseases.
Some trends of drugs. Drugs information sheet.
ivermectin 12 mg
Everything about medicine. Get information now.
Comprehensive side effect and adverse reaction information. earch our drug database.
ivermectin 1 cream 45gm
Everything about medicine. Prescription Drug Information, Interactions & Side.
Medscape Drugs & Diseases. Long-Term Effects.
ivermectin cost uk
Everything information about medication. Best and news about drug.
Prescription Drug Information, Interactions & Side. Some trends of drugs.
stromectol in canada
earch our drug database. Get warning information here.
safe and effective drugs are available. Read information now.
https://stromectolst.com/# ivermectin pills human
Read here. Everything about medicine.
Drug information. Get warning information here.
https://levaquin.science/# where to get cheap levaquin online
Definitive journal of drugs and therapeutics. Everything about medicine.
Actual trends of drug. Read information now.
prinivil 25 mg
Get here. Best and news about drug.
Commonly Used Drugs Charts. п»їMedicament prescribing information.
https://nexium.top/# can i order nexium without insurance
Prescription Drug Information, Interactions & Side. Comprehensive side effect and adverse reaction information.
Read information now. Drug information. buy cheap avodart for sale
Medscape Drugs & Diseases. Get warning information here.
Read now. drug information and news for professionals and consumers.
https://mobic.store/# can i order cheap mobic for sale
Definitive journal of drugs and therapeutics. Learn about the side effects, dosages, and interactions.
Everything what you want to know about pills. Long-Term Effects.
can i order levaquin price
Cautions. Cautions.
п»їMedicament prescribing information. earch our drug database. https://avodart.science/# how can i get avodart without insurance
Everything what you want to know about pills. Actual trends of drug.
Get here. Get warning information here.
https://lisinopril.science/# lisinopril 20mg tablets cost
Get here. Actual trends of drug.
Read information now. Medscape Drugs & Diseases.
lisinopril 20mg tablets price
Everything what you want to know about pills. Medicament prescribing information.
Read now. Read now.
https://lisinopril.science/# lisinopril 250 mg
All trends of medicament. Get information now.
Long-Term Effects. Read information now.
https://nexium.top/# cost generic nexium without a prescription
Everything what you want to know about pills. Long-Term Effects.
Learn about the side effects, dosages, and interactions. Everything information about medication.
https://mobic.store/# can you get generic mobic for sale
Read now. Read information now.
Read here. drug information and news for professionals and consumers.
how to buy mobic no prescription
Read now. Cautions.
safe and effective drugs are available. Read information now. how can i get avodart without rx
Some trends of drugs. earch our drug database.
п»їMedicament prescribing information. Everything information about medication.
where to buy generic propecia
Long-Term Effects. Long-Term Effects.
Everything what you want to know about pills. Everything information about medication.
zithromax azithromycin
Prescription Drug Information, Interactions & Side. Everything about medicine.
Actual trends of drug. п»їMedicament prescribing information.
https://azithromycins.com/ zithromax 500 price
Read information now. Learn about the side effects, dosages, and interactions.
Read here. Commonly Used Drugs Charts. amoxicillin 500 mg where to buy
Drug information. Some are medicines that help people when doctors prescribe.
Read here. Medscape Drugs & Diseases.
https://azithromycins.com/ zithromax over the counter uk
Generic Name. Everything information about medication.
Commonly Used Drugs Charts. Top 100 Searched Drugs. https://amoxicillins.com/ amoxicillin 500 mg
Cautions. Read now.
Best and news about drug. Everything what you want to know about pills.
zithromax z-pak price without insurance
Definitive journal of drugs and therapeutics. Definitive journal of drugs and therapeutics.
Everything information about medication. Get warning information here. where can i buy amoxicillin online
Read information now. Get here.
drug information and news for professionals and consumers. Drug information.
where can i get clomid without rx
Learn about the side effects, dosages, and interactions. safe and effective drugs are available.
Prescription Drug Information, Interactions & Side. Get information now.
buy zithromax online australia
Drug information. Everything about medicine.
Read now. Get here.
can you get generic clomid without dr prescription
Everything information about medication. Prescription Drug Information, Interactions & Side.
Get warning information here. safe and effective drugs are available. https://amoxicillins.com/ amoxicillin over counter
Generic Name. Some trends of drugs.
п»їMedicament prescribing information. safe and effective drugs are available.
zithromax drug
earch our drug database. Long-Term Effects.
Medicament prescribing information. Get here.
zithromax for sale us
Comprehensive side effect and adverse reaction information. Prescription Drug Information, Interactions & Side.
Commonly Used Drugs Charts. Long-Term Effects.
https://edonlinefast.com best otc ed pills
Commonly Used Drugs Charts. Drug information.
Some trends of drugs. Drug information.
https://edonlinefast.com ed meds
Some trends of drugs. What side effects can this medication cause?
All trends of medicament. Get information now.
generic ed drugs
Some trends of drugs. Best and news about drug.
Read information now. Top 100 Searched Drugs.
clomid generic
What side effects can this medication cause? Get here.
Definitive journal of drugs and therapeutics. Everything about medicine.
pills for ed
Commonly Used Drugs Charts. Read information now.
safe and effective drugs are available. Get information now.
https://edonlinefast.com ed pills comparison
Everything about medicine. Get information now.
Drug information. Drug information.
ed treatment pills
Get warning information here. Everything about medicine.
Get information now. Medscape Drugs & Diseases.
best male enhancement pills
Comprehensive side effect and adverse reaction information. п»їMedicament prescribing information.
Read here. Get warning information here.
natural ed medications
Definitive journal of drugs and therapeutics. safe and effective drugs are available.
Cautions. What side effects can this medication cause?
ed meds
Everything what you want to know about pills. Get information now.
Get warning information here. Get here.
https://edonlinefast.com best ed pills online
Read information now. Read information now.
Get information now. Read information now.
pet antibiotics without vet prescription
Prescription Drug Information, Interactions & Side. drug information and news for professionals and consumers.
What side effects can this medication cause? Get here.
ed meds online canada
Medscape Drugs & Diseases. Definitive journal of drugs and therapeutics.
Everything information about medication. Read information now.
https://canadianfast.com/# comfortis without vet prescription
All trends of medicament. Get information now.
Get warning information here. Comprehensive side effect and adverse reaction information.
ed meds online without doctor prescription
Commonly Used Drugs Charts. Medscape Drugs & Diseases.
Drug information. Prescription Drug Information, Interactions & Side.
https://canadianfast.com/# meds online without doctor prescription
earch our drug database. Top 100 Searched Drugs.
Some trends of drugs. Everything what you want to know about pills.
https://canadianfast.com/# how to get prescription drugs without doctor
Read now. Get warning information here.
Generic Name. Everything about medicine.
best non prescription ed pills
Comprehensive side effect and adverse reaction information. All trends of medicament.
Best and news about drug. Long-Term Effects.
cat antibiotics without pet prescription
Get information now. Read now.
Drug information. Get information now.
cheap canadian pharmacy online
All trends of medicament. Drugs information sheet.
Read information now. Read information now.
non prescription erection pills
Read information now. Commonly Used Drugs Charts.
Comprehensive side effect and adverse reaction information. Actual trends of drug.
reliable canadian online pharmacy
Some are medicines that help people when doctors prescribe. п»їMedicament prescribing information.
Some trends of drugs. Actual trends of drug.
canadian pharmacy 24 com
Best and news about drug. Top 100 Searched Drugs.
Long-Term Effects. Top 100 Searched Drugs.
best non prescription ed pills
Everything information about medication. Medscape Drugs & Diseases.
Everything information about medication. Read here.
cheap canadian pharmacy online
Everything what you want to know about pills. What side effects can this medication cause?
Medscape Drugs & Diseases. Read information now.
canadian pharmacy antibiotics
Best and news about drug. Get here.
Read here. Cautions.
buy sildenafil india
Some are medicines that help people when doctors prescribe. Read here.
Comprehensive side effect and adverse reaction information. Everything about medicine.
sildenafil citrate india
All trends of medicament. safe and effective drugs are available.
Read information now. Cautions.
buy viagra now
Some are medicines that help people when doctors prescribe. Drugs information sheet.
Drugs information sheet. Learn about the side effects, dosages, and interactions.
buy real sildenafil online with paypal from india
Medscape Drugs & Diseases. Read now.
Actual trends of drug. Medscape Drugs & Diseases.
viagra side effects blood pressure
Definitive journal of drugs and therapeutics. Best and news about drug.
Read now. Read information now.
buy sildenafil generic india
Long-Term Effects. Read here.
drug information and news for professionals and consumers. Everything what you want to know about pills.
tadalafil 5mg cost
Learn about the side effects, dosages, and interactions. Get here.
All trends of medicament. Some are medicines that help people when doctors prescribe.
tadalafil 20mg uk
п»їMedicament prescribing information. Everything information about medication.
Best and news about drug. Everything information about medication.
tadalafil 5 mg coupon
Best and news about drug. п»їMedicament prescribing information.
Drug information. Read information now.
cialis at a discount
Everything what you want to know about pills. Definitive journal of drugs and therapeutics.
Medicament prescribing information. Everything what you want to know about pills.
https://tadalafil1st.online/# tadalafil 100mg
Medscape Drugs & Diseases. What side effects can this medication cause?
Get warning information here. earch our drug database.
cialis paypal accepted australia
Drug information. Read information now.
earch our drug database. Get warning information here.
que es mejor viagra o cialis
Top 100 Searched Drugs. Comprehensive side effect and adverse reaction information.
Comprehensive side effect and adverse reaction information. earch our drug database.
https://tadalafil1st.online/# buy cialis tadalafil
safe and effective drugs are available. drug information and news for professionals and consumers.
Everything information about medication. Read now.
tadalafil uk generic
drug information and news for professionals and consumers. Actual trends of drug.
Drugs information sheet. Top 100 Searched Drugs.
https://tadalafil1st.online/# cialis vs viagra vs kamagra
Everything about medicine. Read information now.
Read here. Some trends of drugs.
cialis online
safe and effective drugs are available. Definitive journal of drugs and therapeutics.
earch our drug database. Generic Name.
discount cialis from india
Cautions. Medscape Drugs & Diseases.
Read information now. Drugs information sheet.
zithromax azithromycin
Some trends of drugs. Everything about medicine.
Drug information. Cautions.
order generic clomid pills
п»їMedicament prescribing information. Drugs information sheet.
Long-Term Effects. earch our drug database.
https://prednisoned.top/ prednisone 30
Long-Term Effects. Read here.
viagra without a doctor prescription drugs that cause ed mens erection pills
male enhancement causes for ed best online canadian pharmacy
cheap pills online: canadian pharmacy online – erectile dysfunction drug
soma therapy ed ed pills that work quickly best erectile dysfunction pills
male erection: causes of ed – cheap ed pills
medicine for ed erectile dysfunction drug erectyle disfunction
se puede comprar viagra sin receta: sildenafilo cinfa sin receta – venta de viagra a domicilio
Viagra Generika Schweiz rezeptfrei: Viagra kaufen Apotheke Preis – Sildenafil Generika 100mg
Viagra vente libre pays: Viagra pas cher livraison rapide france – Meilleur Viagra sans ordonnance 24h
sildenafilo cinfa sin receta: sildenafilo cinfa 100 mg precio farmacia – comprar sildenafilo cinfa 100 mg espaГ±a
Viagra Alternative rezeptfrei: Sildenafil Preis – Viagra Generika Schweiz rezeptfrei
Viagra verschreibungspflichtig: Viagra kaufen ohne Rezept legal – Viagra diskret bestellen
https://drugswithoutdrprescriptions.com/# canada drug pharmacy
https://drugswithoutdrprescriptions.com/# mail order pharmacy
canadadrugpharmacy com canadian pharmacy 1 internet online drugstore drugs from canada
mexican pharmaceuticals online mexico drug stores pharmacies best online pharmacies in mexico
mexico pharmacies prescription drugs purple pharmacy mexico price list mexico drug stores pharmacies
canadian pharmacy mall canadian drug pharmacy canada pharmacy online
zithromax over the counter: buy generic zithromax online – buy generic zithromax online
buy ciprofloxacin tablets: ciprofloxacin 500mg buy online – ciprofloxacin 500mg buy online
order doxycycline online: generic doxycycline – generic doxycycline
cipro online no prescription in the usa: buy cipro online canada – buy ciprofloxacin
buy doxycycline cheap: cheap doxycycline online – buy doxycycline for dogs
buy antibiotics over the counter: antibiotic without presription – buy antibiotics online
http://overthecounter.pro/# over the counter diet pills that work
http://overthecounter.pro/# best over the counter toenail fungus treatment
https://overthecounter.pro/# over the counter blood pressure medication
highest discount on medicines online: online canadian discount pharmacy – prescription drugs online
prescription price checker: canadian online pharmacies ratings – good online mexican pharmacy
online canadian pharmaceutical companies: certified canadian international pharmacy – mexican pharmacy online medications
pills for erection: ed pills for sale – п»їerectile dysfunction medication
http://indianpharmacy.pro/# reputable indian online pharmacy
http://indianpharmacy.pro/# best online pharmacy india
https://edmeds.pro/# cheap erectile dysfunction pill
http://fastdeliverypill.com/# canadian pharmaceuticals online reviews
canadian pharmacy prices: legal to buy prescription drugs from canada – canadianpharmacy com
india pharmacy: india online pharmacy – buy medicines online in india
reputable indian pharmacies: mail order pharmacy india – top 10 pharmacies in india
levitra vs cialis side effects: buy Tadalafil 20mg – cialis super active 20 mg
precription drugs from canada: best mail order pharmacy canada – canadian family pharmacy
п»їcipro generic: buy cipro online without prescription – where can i buy cipro online
https://pharmfd.online/# legit online pharmacy
http://indiapharmfd.com/# reputable indian pharmacies
https://edpillsfd.com/# erection pills online
https://pharmfd.com/# canadian pharmacy cheap
https://indiapharmfd.com/# indian pharmacies safe
kamagra: Buy Kamagra online next day delivery – Kamagra 100mg
buy priligy: priligy over the counter – Priligy price
buy generic propecia pill: Buy Finasteride online – how to get cheap propecia for sale
where to buy generic propecia online: where to get generic propecia without insurance – cost of cheap propecia
Buy Kamagra online next day delivery: Kamagra Oral Jelly 100mg buy online – kamagra tablets usa
buy kamagra online: kamagra tablets usa – buy kamagra online
generic propecia online: finasteride over the counter – how to get propecia pills
canadian pharmacy king reviews: my canadian pharmacy reviews – canadian pharmacy online
mexican border pharmacies shipping to usa: mexican pharmaceuticals online – mexican drugstore online
indian pharmacy online: reputable indian pharmacies – india pharmacy mail order
mexico drug stores pharmacies: mexican drugstore online – mexican drugstore online
sildenafil 50mg for sale: generic sildenafil canada – where can i buy over the counter sildenafil
where to get priligy. The development of continuous wet granulation equipment enhances the efficiency of tablet manufacturing
order fildena https://community.alteryx.com/t5/user/viewprofilepage/user-id/524722/ plaquenil canadian pharmacy 200 mg 60 tablets
https://pando.life/article/128006 cost of Cheap clomid
https://experienceleaguecommunities.adobe.com/t5/user/viewprofilepage/user-id/17932560 vidalista vs cenforce
https://community.usa.canon.com/t5/user/viewprofilepage/user-id/236149 buy qvar online
https://www.fundable.com/fildena-150-mg purple fildena 100 mg tablets